High prices are the market’s method of eliciting an economic immune response. As swarms of people respond to the wailing klaxons of above average profit, supply swells until prices begin to fall. It is this natural up/down demand/supply equilibrium that lets a market know where to devote more or fewer resources.
This nationwide network of rural hospitals was established in the 1940s by the federal government. For the most part they were quite successful with few closures, that is, until the first year of Obamacare regulations came on line – 2010. Obamacare then began to smother these community hospitals with shortsighted regulations that do nothing to limit costs. These regulations included penalties for patient re-admittance if done too soon after initial release, mandates to establish electronic medical records, as well as cuts in Medicare reimbursements to hospitals. While one hand of Obamacare beats these hospitals with a stick (regulation), the other hand offers a Band-Aid (Medicaid expansion); truly a case of governmental cognitive dissonance.
Regulations are an economic good. They provide a benefit, but like all economic goods they have a cost. However, when economic goods are forcibly imposed their cost no longer bears any relationship to the true demand (and hence price) for them.
So, it’s not that people want access to a pool per se, (clearly there is already “access” locally), it’s that they want someone else to foot the lion share of the bill. Getting the county to provide these things means that when you utilize them a disproportionate burden of the cost is shifted to (a) all those with a higher property value than yours and (b) all those that use it less than you do. Subsidization, pure and simple.
… while he (the President) praises the capacity for the American economy to foster vigorous job growth he is entirely oblivious to the fact that the rate of productive job creation scales with the level of individual freedom … and thus being so oblivious he then calls for yet another layer of regulation that is guaranteed to retard the very job growth he praises.
Every Halloween children engage in the single largest simultaneous generation of mutual profit and yet not a single dollar changes hands.
Last Friday a group known as “Fast Food Forward” (tightly affiliated with the SEIU union) led a series of demonstrations in over 100 US cities at fast food restaurants where they called for a near doubling of the federal minimum wage to $15/hour. In further news there were a number of similar demonstrations in which […]
Argumentum ad populum Of the various flavors of government interventionism in our lives, the minimum wage is perhaps the most welcomed. It appeals not only to our innate sense of “fairness” but also to our self-interest. It’s allure may erroneously lead us to the conclusion that because “it is popular” ergo “it is right”. Arguments […]
I was recently involved in the “Debate that Never Happened” at UGA through the Phi Kappa literary society where the question “Is full employment possible under capitalism?” was the topic. Unfortunately the audio is a bit low… if you turn it all the way up and sit in a quiet room I think you can […]
It has recently come to my attention (thank you George Warren) that the economist Steve Keen has proposed a solution to our economic woes: the government should give people money to pay off their debts. According to Keen it is the high level of private debt (about three times that of annual US GDP ) that […]